On December 18, 2025, the U.S. Securities and Exchange Commission (SEC) approved the Nasdaq's comprehensive plan to raise the liquidity threshold for IPOs. This plan includes two key adjustments: firstly, significantly increasing the minimum public float market capitalization requirement for global company IPOs from $5 million to $15 million; secondly, proposing a higher fundraising requirement of $25 million specifically for enterprises primarily operating in China. This marks a further shift in U.S. stock listing regulations from "formal compliance" towards "substantive risk control." Among these, the new global threshold of $15 million officially took effect on January 17, 2026, significantly narrowing the path for small and medium-sized enterprises to seek financing in the U.S. The specialized $25 million requirement targeting Chinese companies remains a proposal and has not yet been implemented, with its subsequent progress subject to further observation.

Against the backdrop of comprehensively raised barriers for U.S. listings, some Chinese companies still aim to tap into the U.S. capital markets, including Hong Kong-based Riverstone Ltd (hereinafter referred to as "Riverstone"). Following a confidential submission to the SEC on April 11, 2025, Riverstone filed a public version of its prospectus with the SEC on December 29, 2025, applying to list on the Nasdaq under the ticker symbol "DNJF." According to the prospectus, Riverstone is a vertically integrated fast-fashion supply chain management service provider with both B2B and B2C business models. It plans to issue 2.5 million ordinary shares at a price between $5 and $7 per share in this IPO, aiming to raise approximately $12.5 million to $17.5 million. Calculated at the midpoint of the offering price range, Riverstone's market capitalization would reach $75 million.

Impressive financial performance is likely the confidence behind Riverstone's pursuit of a U.S. listing. For the fiscal years 2023 to 2025 (12 months ended March 31), Riverstone's revenue was $28.4348 million, $39.3037 million, and $46.2931 million, respectively, with corresponding net profits of $299,000, $2.5188 million, and $3.0116 million, achieving dual growth in both revenue and profit. However, it is noteworthy that the new Nasdaq rules require Chinese companies to raise at least $25 million. Therefore, despite its steady growth, Riverstone must increase its fundraising target to list successfully. This depends on whether Riverstone can gain sufficient investor recognition to support a higher valuation or a larger offering size.

Riverstone's product sales business has shown strong performance, with economies of scale driving gross margin improvement. Originating from Hong Kong, Riverstone has expanded globally. In 2010, its founders established D&J in Hong Kong, beginning to provide comprehensive apparel supply chain services. By 2017, the company established Goodwill Development Limited in Hong Kong, marking its initial attempt at group operations. The year 2020 was crucial for Riverstone's international expansion. The company successively established WEDRESS PTY LTD in Australia and Joer Supply Chain Technology Group Limited in Hong Kong, signaling the start of building its global service network. By 2023, Riverstone established a production base in mainland China - Wayne Garment (Ganzhou) Co., Ltd. - and set up its U.S. company, WEDRESS INC., indicating an acceleration in integrating upstream and downstream resources and strengthening its vertically integrated model.

By 2024, Riverstone's global layout accelerated further, with the establishment of branches in the UK and Mexico, and the setup of the necessary holding structure for listing in the Cayman Islands and the British Virgin Islands. In the same year, the company's Ganzhou factory set up a Guangzhou branch, further refining its production layout. To date, Riverstone has developed into a vertically integrated fashion supply chain management service provider focused on the fast-fashion sector. While providing fast-fashion products to clients, it also offers comprehensive AI and 3D-assisted services covering market trend analysis, product design and development, raw material sourcing, production manufacturing, quality control, inventory management, and logistics management.

As a one-stop apparel solution provider, Riverstone's advantage lies in offering clients a simplified yet comprehensive supply chain experience. Its services cover every step from initial design concepts, sourcing, and production manufacturing to quality assurance, packaging, and logistics. By designing, planning, executing, controlling, and monitoring supply chain activities, Riverstone provides clients with competitive supply chain infrastructure. The prospectus shows that Riverstone has built a diversified business model, operating both B2B and B2C segments. On the B2B side, it provides comprehensive apparel solutions for globally renowned fashion retailers and supports designers in launching their own brands. On the B2C side, Riverstone also designs and produces clothing under its own brands, such as "DOUBLE CRAZY."

Currently, Riverstone's business spans countries including Australia, Mexico, the UK, and the US. It has established long-term partnerships with leading fashion brands like BOOHOO, PRETTY LITTLE THING, CIDER, SHOWPO, Fashion Nova, and GIRL IN MIND, and has built solid strategic collaborations with a carefully selected network of regional factories. In terms of revenue structure, Riverstone primarily has two business segments: product sales revenue and royalty income. Product sales revenue comes from providing international brands and retailers with integrated one-stop services encompassing professional women's wear design, pattern making, production, processing, customization, and sales. Royalty income is generated when clients use the company's trademarks to sell apparel to purchasers, with Riverstone collecting royalties based on a certain percentage.

Riverstone's sustained performance growth is primarily attributed to the continued strength of its product sales revenue. The prospectus reveals that from fiscal 2023 to 2025, product sales revenue was $28.4348 million, $38.1143 million, and $45.0051 million, respectively, representing a compound annual growth rate of 25.87%. During the same period, royalty income was $0, $1.1894 million, and $1.288 million. Although this segment shows a positive trend, its contribution to total revenue remains small, accounting for less than 3% in fiscal 2025. As revenue scale continues to grow, economies of scale have driven a continuous improvement in Riverstone's gross margin. From fiscal 2023 to 2025, the gross margin was 3.7%, 11.2%, and 16.4%, respectively, showing a consistent upward trend. This has accelerated the release of profits, leading to net profits of $299,000, $2.5188 million, and $3.0116 million for fiscal 2023 to 2025.

It is noteworthy that the net profit growth rate slowed in fiscal 2025, mainly because the proportion of selling and marketing expenses increased significantly from 2.7% in fiscal 2024 to 7.4%. Riverstone attributed this to an increase in employees and sales personnel due to business scale expansion, as well as expenses related to the current IPO. Riverstone stands to benefit from the industry's accelerated development but must confront multiple potential challenges. In fact, Riverstone's sustained performance growth is directly related to industry trends. Frost & Sullivan notes that despite the significant challenges posed by the pandemic to the global economy, the fast-fashion sector has demonstrated notable resilience. From 2019 to 2023, the global fast-fashion supply chain management services market showed robust growth, expanding from $36.4 billion to $46.7 billion, with a compound annual growth rate of 6.4%. The continuous expansion of the industry scale has provided opportunities for Riverstone's growth.

Frost & Sullivan believes that driven by factors such as advancements in supply chain management technology, increased consumer demand for fast fashion turnover, and the expansion of fast-fashion brands into emerging markets, the global fast-fashion supply chain management services market will grow from $52 billion in 2024 to $79.7 billion in 2028, with the compound annual growth rate rising to 11.2%. While the accelerated industry development presents opportunities for Riverstone, a closer examination of its business reveals it also faces multiple potential challenges. The first is intense market competition. The global fast-fashion supply chain services market is already mature, characterized by high competition and fragmentation. Riverstone must compete against international giants like Zara, H&M, and Uniqlo, which have built high industry barriers through strong brand influence, efficient supply chain systems, and sustainable practices.

Simultaneously, the industry is also impacted by digitally-driven online fast-fashion brands like SHEIN, which further compress the生存空间 (survival space) of small and medium-sized enterprises through flexible "small-batch, quick-response" supply chains and extreme cost-performance strategies. Although Riverstone has established a service network in markets like Australia, Mexico, the UK, and the US through its vertically integrated model and emphasizes eco-friendly practices for differentiated competition, it must continuously enhance supply chain response speed, digital capabilities, and brand value to secure a firm foothold in the highly fragmented market under the dual pressure from giant economies of scale and emerging business models. Secondly, Riverstone's customer concentration is not low. The prospectus shows that Riverstone relies on several major customers. In fiscal 2024 and 2025, revenue from these major customers accounted for 28% and 34% of total revenue, respectively, indicating a slight increase in concentration.

Riverstone does not have long-term agreements with these customers but operates on an order-by-order basis. The loss of these major customers could impact the company's performance. Meanwhile, the high concentration of Riverstone's suppliers also warrants investor attention. In fiscal 2024 and 2025, procurement from four independent contract manufacturers accounted for 60% and 67% of total procurement, respectively. While centralized procurement offers cost advantages, it also increases supply chain risk. If major suppliers fail to deliver effectively and new suppliers cannot be found promptly, it could pose supply chain risks. Additionally, Riverstone's trade receivables represent a relatively high proportion of assets, implying a relatively greater risk of credit loss provisions. Data shows that in fiscal 2024 and 2025, trade receivables accounted for 33.1% and 37.9% of total assets, respectively. Furthermore, credit loss provisions for receivables were recognized in both reporting periods, and the possibility of future provisions cannot be ruled out.

In summary, leveraging its vertically integrated model, service network in Australia, Mexico, the UK, and the US, and differentiation through an emphasis on eco-friendly practices, Riverstone has successfully achieved sustained performance growth. However, as a small enterprise in the highly competitive fast-fashion industry, it still needs to build more robust core competitive barriers. Furthermore, its operational structure with relatively high customer and supplier concentration, along with the potential financial and operational risks associated with its sizable trade receivables, requires ongoing attention in its future development.